In his new office at the Research and Development Division of PT Korindo Heavy Industry (KHI), Mr. Miet Sugiarso, the newly-appointed head of Research and Development, pondered about the challenges that he and his associates would have to face in the months ahead. He had just been in another meeting with the Board of Directors of KHI regarding  the development of KHI’s newly formed automotive manufacturing division.

Several months before, sometime in late 2005, Sugiarso, along with his co-workers and friend, Puryanto, were invited to the offices of Korindo Heavy Industry by the company’s Board of Directors and offered positions to lead the development of a new business division for the manufacture and assembly of commercial vehicles. However, the company had never been involved in any project that was remotely close to automotive manufacturing.

Korindo Heavy Industry had been originally established to handle some of the manufacturing projects of the Korindo Group, a business conglomerate under which KHI operates. Originally, the Heavy Industry’s main business operation involved the manufacture of containers for shipping and transportation purposes. Within this industry, KHI prospered for nearly a decade before eventually being forced out of business due to competition from Chinese container manufacturing companies, as well as other external factors.

As the company declined, its directors began formulating plans to change the company’s core business towards more profitable ventures, which they hoped would be able to bring the company out of its current predicament, as well as provide them with new opportunities for growth. After much deliberation, the board of directors eventually decided to enter the automotive industry. A new course had been charted; what was needed next was to set the foundations for a successful take-off. The responsibility was offered to Sugiarso and his co-worker Puryanto, both of whom, had extensive knowledge of the automotive industry. They accepted the offer seeing it both as an opportunity and as a challenge, though, they realized that it would not be easy.

Korindo, having no prior experience in the motor the automotive industry meant that the company was ill-prepared to face the challenges of the new venture. Container manufacturing and motor vehicle manufacturing were completely different from each other. Many of its processes and systems would have to be rebuilt in order to meet the more stringent requirements of motor vehicle manufacturing. Furthermore, they faced the challenge of entering an industry that was already dominated by other more mature, and experienced players like Mitsubishi, Toyota, Hino, and others.

Meanwhile, there were pressures, from the Board of Directors, for the automotive manufacturing division to quickly begin its operations and to introduce and launch their first product within the next 6 months. Before that, Sugiarso and his team would have to first set up a working system as well as address critical issues such as a market penetration strategy, along with competitive strategies for their new products.

The redesign of the company was approved by the principals of the Korindo Group. The total investment was over USD 40 million; 33 million was allocated to equipping and redesigning the facilities, recruitment of necessary manpower, and the installation of new systems. The rest of the funds were allocated to the establishment of organizations that would support the operations of KHI. These organizations represent companies operating alongside KHI under the Korindo Group such as Korindo Motors, a distribution company, and Clemont Financial, a leasing company.

The second part of the case will show how Korindo Heavy Industry formulated and executed the new strategy of entering the automotive industry. Having a new vision and mission is important to communicate how the new company would be. It is also important to understand how the new vision was to be implemented.

Since Mid 2007, SDV Indonesia had been working on different issues following the implementation of their information management system, called Pegase. Pegase is an ERP software package which aims to create clear processes for any operation related to SDV Indonesia. The information flow had to become transparent and efficient in order to improve the productivity of and respect for corporate regulations.

Pegase would change the whole organization in SDV; the way people work and solve problems. After a few weeks, it seemed that some people were not enjoying the process of change. The reluctance was so intense that even the General Director received threatening emails, and had to face a strike.

How should the management of SDV handle this process of change? How to solve the critical implementation phase? How should the management of SDV deal with the difference in work culture?

This case study examines the effects on the corporate culture of Indocement after Heidelberg Zement acquired the company after the 1998 monetary crisis. The crises ballooned Indocement’s debts and diminished sales due to decreased consumer spending and buying power. As a result, Mr. Kuky Permana, Indocement Core-T team leader, sought investors, and then convinced Heidelberg Zement to buy Indocement shares. At the same time, he had to work to preserve Indocement’s corporate culture.

In this case, participants are to analyze the market situation that affected organizational performance, the corporate cultures of Indocement and Heidelberg Zement, and to choose a culture merger strategy.

While observing the total traffic jam, Wasis Gunarto starts to explore the Internet and clicks jalansutra @yahoogroups.com. As the founding person in this community, it is his daily customary to monitor traffic discourse in the mailing list. His eyes concentrate on the membership number which has already passed 13,000, he mumbles/ this is no joke.  Many different problems start coming up.  Indeed, as it is explained by a certain reference on online community – the higher the number of an online community memberships, the more complicated and complex the problems that appear.

From his blackberry, Wasis sends SMS to the two Jalansutra principal moderators who are still very active accompanying him, they are Gatot Purwoko and Andrew Mulianto.  Jalansutra mailing agent members have known Andrew Mulianto as a tour owner, since he owns a Travel Agency.  So far both of them always have brilliant ideas in developing Jalansutra. Wasis thinks it is necessary to hold a meeting with these two colleagues.

Community assembly is very easy to manage in this era where the Information and Communication Technology (ICT) grows very fast. With Internet, a group of people who possess same interest can be reached in a very short time.

One of the most radiant progresses from vast internet users in Indonesia in the year 2000 is discussion through mailing list. Mailing list in Indonesia is called ‘Milis’. Milis is a place where a group of people with same interest or people coming from the same community can discuss things.

Natural Cooking Club (NCC) is a club that consists of women who likes to cook. It’s one of many online communities that formed lately, that have succeeded in developing its activity. Beside the increasing amount of milis member (more than 7000 at the end of 2008), the members have received tangible and intangible use of this community.

One of NCC’s key of success is the perseverance of its founder in maintaining relationship with the member. “Togetherness” is the motto of this cooking club. Various scheduled offline gathering activities have become the place to gather and bridging virtual communication to face-to-face communication.

NCC existence and exposure is possible because of the help from moderators who have join commitment to develop the community. There are also members who have blog that have become a multiple information channel to society who aren’t aware of this community.

The issue for owner, Fatmah Bahalwan is how to maintain the ‘sense of community’ from its member. With the community’s development and the increasing amount of member, the owner is worried about the decreasing of emotional intensity that has been the core power of NCC.

The growth of local and national TV station (that can be watched without any cost, also known as free to air – FTA) apparently do not followed by the increasing of quality of the program. In other words, although the amount of TV stations and programs are increasing, it was not the case with public’s satisfaction. Most  TV operators offer similar shows

TV viewers feels that they don’t have other choice of program to enjoy, thus they have to follow existing programs. There are many complaints regarding shows that have physical, social and psychological violence, also SARA (harassment toward certain community, child abuse and things that are far from norms, religion and morality) elements. Most of parents are complaining because the TV show are recklessly made and stressing on commercial elements without considering the consequences.

The emerging of Pay TV operators in Indonesia give viewer new alternative for interesting programs. Unfortunately, pay TV’s market has not been developed  thoroughly especially by the market leader, Indovision. Viewers amount is very low compare to its potential.

There are some opinions about conflict of interest between Indovision and the group of company that owned Indovision – MNC, due to their mutual ownership of RCTI and other FTA. If Pay TV penetration is high, it will take the portion of the successful  TV station (RCTI) in the same corporation. Thus, until today, Pay TV’s market in Indonesia is not as big as other developing countries.

Consequently, the emerging of Astro, a new brand of pay TV brought fresh air for pay TV industry. With a strong spirit to penetrate the market, this brand aggressively and continually give customer a clear reason that it is time to have a pay TV.

Astro Nusantara is a pay TV operated by PT Direct Vision since 28 February 2006, a joint venture between Astro All Asia Network plc and PT First Media Tbk, sub company of Lippo Group. There are 48 kinds of channel, including 5 local channels produce and displayed exclusively by Astro, which are: Astro Aruna, Astro Ceria, Astro Awani, Astro Kirana and Astro.

Astro TV’s aggressiveness emerged even more when it controversially get the English Premiere League (EPL) broadcast license. The program that is usually enjoyed freely by every layer of society because it’s broadcasted at FTA TV, now can only be enjoyed by Astro pay TV customers.

Indovision’s respond regarding the emerging of Astro in the market is to make it as a prominent competitor. Indovision’s commercial tries to emphasized on Astro’s insufficiency.  Whereas as a market leader, it’s Indovison’s task to extend market penetration toward FTA despite of fellow pay TV.

Issue that is brought in this case is to resume whether Astro’s strategy to increase customer base with EPL is a positive act for Astro’s brand equity development. The increasing of viewers amount that is not equal to many negative comments about this brand in many kinds of media, especially Internet.

Before the EPL issue resolves, Astro’s management faced other complicated problem, that is conflict between the stockholder which cost the end of Astro pay TV’s operation in Indonesia.

The three years broadcast time is filled by dynamics for Astro. As a new developed brand, it has to be taken from viewers that begin to feel the connection to the brand.

This case study illustrated how J.Co preparation to obtain consumer enthusiasm. The process of product preparation begins with comprehensive research of customer and development of the value concept from J.Co. Johnny, as the owner had a great vision and a keen intuition in seeing the market opportunity.

In the case study, we can learn about how the company formulates the value proposition offering to the market. This discussion can be analyzed through a hierarchy of values, also the product hierarchy. Further, we can learn how J.Co builds differentiation of products and services. After that, we will learn how J.Co delivers its offering toward store ambience and creating customer experience during consumption process.

This case study describes the implementation of CSR Programs since 2003 under Angkasa Pura 1, which were evaluated in 2007. Angkasa Pura is a state-owned enterprise (SOE) that manages public services and acts as an arm of the government in improving social welfare.

In this case, participants can learn how companies perform CSR program in two forms: the Partnership Program and the Environment Program. The Partnership Program is done by providing soft loans to small entrepreneurs as their capital and additional capital for their business development. This program has a great demand among small businesses because the procedure that is used is relatively easier compared to the process of borrowing money from banks. This activity can be categorized as corporate philanthropy.

Activities in the Environment Program provide assistance to communities in improving facilities for daily life. Some examples of activities that have been accomplished are the construction of roads, mosques (Muslim prayer houses), and public bathing facilities. These can be categorized as corporate social marketing.

The Krakatau Steel’s (Persero) management confronted a difficult task in obtaining new capital injection to increase the production target from its current capacity 2,5 MT to 5 MT by year 2013.

The options faced by management are whether KS issues new shares through Strategic Sale (SS) or Initial Public Offering (IPO) mechanism. In this case, both alternatives had their pros and cons. The strategic partner for Strategic Sale mechanism is offered aggressively by ArcelorMittal, foreign steel company, Luxemburg and Indian joint steel company.

The controversy strategic sale issue came to an end in 18 September 2008 when the Indonesia’s Legislator Body or DPR ruled out any strategic sale of KS ownership to foreign parties and that KS’s equity requirements for the planned expansion and enhancement of their facilities would be conducted through an Initial Public Offering (IPO) process.

The IPO of KS confronts a reality of market crash near the end of 2008. While time was an essence as the development project was expected to take 2-3 years, optimizing shareholder’s value by selecting the best choice of source of fund given the current markets was also important. Eventually, proposal from ArcelorMittal for Strategic Sale remains on the table.